M/s Micro Focus Software India Private Limited , Bangalore V. Deputy Commissioner of Income Tax Circle-4(1)(2), Bangalore

ITA 3129/BANG/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8936 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 8 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 10-08-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 22-11-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: T S URYANARAYANA MS NE
• Keywords: Opportunity of being heard; Set aside
• Section: 144C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER IT ( TP) A NO . 3129/ BANG / 2018 ASSESSMENT YEAR : 2014 - 15 MICRO FOCUS SOFTWARE INDIA PVT. LTD., [FORMERLY NOVELL SOFTWARE DEVELOPMENT (INDIA) PVT. LTD.], BAGMANE TECH PARK, BLOCK D, LAUREL 65/2, C V RAMAN NAGAR, BYRASANDRA, BENGALURU 560 093. PAN: AAACN 6992K VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 4(1)(2), BENGALURU. APPELLANT RESP ONDENT APPELLANT BY : SHRI T. S URYANARAYANA, ADVO CATE RESPO NDENT BY : MS. NEERA MALHOTRA, C IT(DR)(ITAT ), BENGALURU. DATE OF HEARING : 10 . 0 8 .2021 DATE OF PRONOUNCEMENT : 10 .0 8 .202 1 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE ASSESSING OFFICER DATED 24.09.2018 PASSED U/S. 143( 3) R.W.S. 144C OF THE INCOME-TAX ACT, 1961 [THE ACT] FOR THE ASSESSMENT Y EAR 2014-15. 2. AT THE TIME OF HEARING, THE LD. COUNSEL FOR TH E ASSESSEE SUBMITTED THAT GROUND NOS.2 TO 10 RELATING TO TRANSFER PRICIN G ADJUSTMENT HAVE BEEN SETTLED UNDER THE ADVANCED PRICING AGREEMENT U/S. 9 2CC OF THE ACT DATED IT(TP)A NO.3129/BANG/2018 PAGE 2 OF 3 20.08.2020 AND IN VIEW OF THE SAME THESE GROUNDS AR E NOT PRESSED. ACCORDINGLY, THE SAME ARE DISMISSED AS NOT PRESSED. 3. THE ASSESSEE HAS RAISED THE FOLLOWING ADDITIONAL GROUNDS:- 14A. THAT THE AO/DRP GROSSLY ERRED IN UPHOLDING T HE DISALLOWANCE MADE BY THE ASSESSING OFFICER OF A SUM OF RS.9,16,902 BEING EXPENDITURE INCURRED ON REPAIRS A ND MAINTENANCE, WITHOUT APPRECIATING THAT THE SAME WAS INCURRED BY THE APPELLANT AND WAS THEREFORE ELIGIBLE TO BE ALLO WED AS A DEDUCTION. 14B. THAT THE DRP ERRED IN NOT CONSIDERING THE EVI DENCE PRODUCED BY THE APPELLANT BEFORE IT. 4. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ADDITIONAL GROUNDS GO TO THE ROOT OF THE ISSUE AND THE SAME MA Y BE ADMITTED IN VIEW OF THE JUDGMENT OF HONBLE SUPREME COURT IN THE CAS E OF NATIONAL THERMAL POWER COMPANY LTD. V. CIT, 229 ITR 283 (SC) . RELYING ON THIS JUDGMENT OF THE HONBLE SUPREME THE ADDITIONAL GROUNDS RAISE D ARE ADMITTED. 5. THE ADDITIONAL GROUND FILED BY THE ASSESSEE REQU IRES EXAMINATION BY THE AO. HENCE THE ORDERS OF LOWER AUTHORITIES ON T HE ISSUE OF EXPENDITURE ON REPAIRS AND MAINTENANCE IS SET ASIDE AND IS REMI TTED TO THE FILE OF ASSESSING OFFICER FOR FRESH CONSIDERATION AND DECIS ION IN ACCORDANCE WITH LAW, AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. PRONOUNCED IN THE OPEN COURT ON THIS 10 TH DAY OF AUGUST, 2021. SD/- SD/- ( N V VASUDEV AN ) ( CHANDRA POOJARI ) VICE PRESIDENT ACCOUNTANT MEMBER BANGALORE, DATED, THE 10 TH AUGUST, 2021. / DESAI S MURTHY / IT(TP)A NO.3129/BANG/2018 PAGE 3 OF 3 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.